Silver Price Analysis: XAG/USD bulls attack 50-DMA on the way to $25.00
- Silver stays on the front foot after the strongest daily upside in four months.
- Firmer RSI, sustained break of three-month-old trend line favor buyers.
- July low adds to the downside filters, key SMA confluence offers a tough nut to crack to the bulls.
Silver (XAG/USD) stays on the front foot, up 0.30% intraday around $24.80 during early Monday.
The bright metal posted the heaviest daily gains since early May on Friday, crossing a downward sloping trend line from June 11.
Given the firmer RSI line, not overbought, backed by the key trend line breakout, silver prices are likely to remain progressive towards a convergence of the 100-DMA and 200-DMA, surrounding $25.90-95.
It should be noted, however, that the 50-DMA near $24.85 and the $25.00 threshold will act as near-term important hurdles.
Meanwhile, pullback moves need to conquer the resistance-turned-support, near $24.65, before directing XAG/USD sellers towards July lows near $24.50.
It’s worth noting that an ascending support line from August 09, near $23.80, holds the gate for the metal sellers afterward.
Silver: Daily chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
